Bill Text: TX SB110 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to fees paid to certain credit services organizations in connection with certain extensions of consumer credit.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-02-01 - Referred to Business & Commerce [SB110 Detail]
Download: Texas-2019-SB110-Introduced.html
By: Menéndez | S.B. No. 110 | |
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relating to fees paid to certain credit services organizations in | ||
connection with certain extensions of consumer credit. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter A, Chapter 302, Finance Code, is | ||
amended by adding Section 302.003 to read as follows: | ||
Sec. 302.003. RESTRICTION ON CERTAIN THIRD-PARTY FEES TO | ||
OBTAIN, ARRANGE, OR GUARANTEE CERTAIN EXTENSIONS OF CONSUMER | ||
CREDIT. The amount of a fee paid or to be paid to a credit services | ||
organization subject to Chapter 393 to assist a consumer in | ||
transacting, arranging, guaranteeing, or negotiating an extension | ||
of credit or to obtain for a consumer an extension of credit is | ||
considered interest for usury purposes under state law if: | ||
(1) the extension of credit is secured by a | ||
non-purchase money security interest in personal property or is | ||
unsecured; and | ||
(2) the proceeds of the extension of credit are used | ||
for personal, family, or household purposes. | ||
SECTION 2. The changes in law made by this Act apply only to | ||
an extension of consumer credit made on or after the effective date | ||
of this Act. An extension of consumer credit made before the | ||
effective date of this Act is governed by the law in effect on the | ||
date the extension of consumer credit was made, and the former law | ||
is continued in effect for that purpose. For purposes of this | ||
section, a refinance or renewal of an extension of consumer credit | ||
is considered made on the date the extension of consumer credit | ||
being refinanced or renewed was made. | ||
SECTION 3. This Act takes effect September 1, 2017. |